PGIM raises over $2.4bn direct lending fund

PGIM Private Capital collected in excess of $2.4 billion in committed capital for the PGIM Senior Loan Opportunities I (PSLO I), its inaugural direct lending fund for unaffiliated investors.

The PSLO I fund close follows two decades of capital deployment in comparable direct lending strategies or affiliated investors with support from a blue-chip institutional investor base including insurance companies, pension funds and sovereign wealth funds across the U.S., Europe and Asia.

“The closing of PSLO I validates a unique investment proposition in the Direct Lending asset class, leveraging our world-class origination approach to create portfolio diversification among both non-sponsored and sponsored issuers in the middle market,” said Jeff Dickson, executive managing director and head of alternatives at PGIM Private Capital. “Our deep expertise across geographic markets and relationship-oriented approach to lending have served us well as we continue to deploy capital.”

Nearly 50% of the fund’s capital is already invested, officials added. The fund’s initial close took place one year ago.

PGIM Private Capital manages more than $20 billion in outside non-affiliated assets through its Institutional Asset Management unit and Alternative Investments unit, comprising direct lending, mezzanine and related funds.

The firm’s direct lending approach is based on establishing close, long-term relationships with counterparties, which allows for exhaustive due diligence and better investment suitability determination, officials said in a statement. The strategy accelerates PGIM Private Capital’s existing support of middle-market companies primarily operating in North America, Europe and Australia.

Matthew Harvey, executive managing director and head of Direct Lending, PGIM Private Capital, said, “Our unique approach to non-sponsored and geographic issuer diversification, coupled with a core allocation to traditional sponsored transactions, resonates with sophisticated institutional investors and is increasingly differentiated as the Direct Lending asset class matures.”

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